REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

1. 12 Chapter REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

2. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Linking Information Systems to the Business Plan • Information systems plan (ISP) • Road map indicating direction of systems development

3. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Establishing Organizational Information Requirements • Enterprise Analysis (Business Systems • Planning) • Analysis of organization-wide information requirements • Identifies key entities and attributes

4. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-1 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Process/Data Class Matrix

5. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Establishing Organizational Information Requirements • Strategic Analysis or Critical Success • Factors • Small number of easily identifiable operational goals • Shaped by industry, firm, manager, and broader environment • Used to determine information requirements of organization

6. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-2 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Using CSFs to Develop Systems

7. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Systems Development and Organizational Change • Automation: Speeding up performance • Rationalization of procedures: Streamlining of operating procedures • Business process reengineering: Radical design of business processes • Paradigm shift: Radical reconceptualization

8. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-3 SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Organizational Change Carries Risks and Rewards

9. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Business Process Reengineering • Work Flow Management • Process of streamlining business procedures • Documents can be moved easily and efficiently from one location to another

10. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Redesigning Mortgage Processing in the United States Figure 12-4a

11. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Redesigning Mortgage Processing in the United States Figure 12-4b

12. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Steps in Effective Reengineering • Senior management needs to develop broad strategic vision • Management must understand and measure performance of existing processes as baseline • Information technology should be allowed to influence process design from start • IT infrastructure should be able to support business process changes

13. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Process Improvement and Total Quality Management (TQM) • How information systems contribute • to Total Quality Management • Simplify product or production process • Enable benchmarking • Use customer demands as guide to improve products and services • Reduce cycle time

14. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems OVERVIEW OF SYSTEMS DEVELOPMENT Overview • Systems development • Activities that go into producing information systems solution • Systems analysis • Analysis of problems that organization aims to resolve using information systems

15. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-5 BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) The Systems Development Process

16. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems OVERVIEW OF SYSTEMS DEVELOPMENT Overview • Feasibility study • Determining achievability of solution • Establishing information requirements • Stating information needs that new system must satisfy • Identifying who, when, where and how components of information

17. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Systems Design • Details how system will meet information requirements as determined by systems analysis • Increases users’ understanding and acceptance of the system • Reduces problems caused by power transfers, intergroup conflict, and unfamiliarity with the new system

18. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Completing the Systems Development Process • Programming • Process of translating system specifications into program code • Testing • Checks whether the system produces desired results under known conditions • Unit testing, system testing, acceptance testing, test plan

19. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Completing the Systems Development Process • Conversion • Process of changing from old system to new system • Strategies: • Parallel • Direct cutover • Pilot study • Phased approach • Documentation

20. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Completing the Systems Development Process • Production and maintenance • Production is stage after new system is installed and the conversion is complete • Maintenance is changes in hardware, software, documentation, or procedures of production system to correct errors

21. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Traditional Systems Lifecycle • Systems lifecycle • Traditional methodology for developing information system • Partitions systems development process into formal stages that must be completed sequentially

22. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Prototyping • Prototyping • Process of building experimental system quickly and inexpensively for demonstration and evaluation • Prototype • Preliminary working version of information system for demonstration and evaluation

23. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Prototyping • Iterative • A process of repeating over and over again the steps to build system

24. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-7 ALTERNATIVE SYSTEM-BUILDING APPROACHES The Prototyping Processes

25. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Steps in Prototyping • Identifying user’s basic requirements • Developing initial prototype • Using prototype • Revising and enhancing prototype

26. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Advantages and Disadvantages of Prototyping • Advantage • Useful in designing information system’s end-user interface • Disadvantage • Rapid prototyping can gloss over essential steps in systems development

27. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Application Software Packages • Application software packages • Set of prewritten, precoded application software programs commercially available for sale or lease • Customization • Modification of software package to meet organization’s unique requirements without destroying the software’s integrity

28. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Application Software Packages • Request for Proposal (RFP) • Detailed list of questions submitted to vendors of software or other services • Determines how well vendor’s product can meet organization’s specific requirements

29. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Development • Development of information systems by end users with little or no formal assistance from technical specialists • Allows users to specify their own business needs

30. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Figure 12-9 ALTERNATIVE SYSTEM-BUILDING APPROACHES End-User Versus System Lifecycle Development

31. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems ALTERNATIVE SYSTEM-BUILDING APPROACHES Outsourcing • Practice of contracting computer center operations, telecommunications networks, or applications development to external vendors

32. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Object-Oriented Software Development • Approach for software development • De-emphasizes procedures • Shifts focus from modeling business processes and data to combining data and procedures to create objects

33. Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Rapid Application Development (RAD) • Process for developing systems in short time period • Uses prototyping, fourth-generation tools, and close teamwork

34. 12 Chapter REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS